STATEMENT TO THE NATION
by
Honourable Lester B. Bird MP
Prime Minister of Antigua and Barbuda
on
Thursday, 27th September 2001

Fellow Citizens

The world is a different place today.

And, over the next few weeks, we are likely to witness even more changes.

Many of these changes will alter the way in which nations conduct business with each other, and will affect the manner in which individuals conduct their lives.

The horrific atrocities of September 11th in New York and Pennsylvania have left deep wounds in the consciousness of the world. We will feel the pain for some time to come.

I know that these events have raised great uncertainties about the future, and many of you are interested in the Government's ideas for dealing with them.

This is why I wanted to speak with you.

Global Recession

There is little doubt now that the international community is headed for an economic recession.

The trend toward recession was already evident in the US economy and that of its European trading partners since earlier in the year.

Investments and profits in American business had been falling. Industrial production fell in August for the 11th successive month, and September's figures will show an even further drop.

Retrenchment was already a feature of the American and European economies, tens of thousands had lost their jobs; and the stock market was down sharply.

The assault of September 11th, occurring at a fragile moment for the American economy, slowed economic activity still further. Stocks fell a further 7% and more than 700,000 jobs have been cut in the aviation industry.

These developments have provoked a marked contraction in consumer spending in the US over a wide range of areas including travel.

People have also had to draw on their savings to live, and this, in turn, has had an adverse impact on funds available for borrowing and investment. Consequently, productive activity and the generation of new jobs have been retarded.

And, since the US economy is the largest market in the world, growth has been adversely affected worldwide.

Antigua and Barbuda not immune

Like every other Caribbean country, we, in Antigua and Barbuda, have not been immune from these developments. Indeed, they have had negative effects on our economy that we are not yet able to measure fully.

For our economy, which is highly reliant on tourism, the effects of September 11th have come at a delicate time.

Tourism was already suffering from the economic decline in Europe and North America earlier in the year. This situation had a negative impact on Government revenue and in the circulation of money in the economy.

Additionally, our attempts to diversify the economy to include financial services and electronic commerce were hampered over the last two years by the financial advisories imposed on us by the United States and the United Kingdom.

Similarly, like many other small jurisdictions, we have suffered from the efforts of the Organization for Economic Cooperation and Development (the OECD) to constrain our programme of further developing our financial services sector.

Therefore, even though we succeeded in persuading the UK and the US to lift their advisories, and we mounted a strong resistance to the OECD, we lost two valuable years in which to grow the financial services sector to help cushion our economy from any sudden decline in tourism.

We now face the real prospect that tourism from the United States - our largest market for tourist arrivals - will shrink in the coming months to the entire Caribbean including Antigua and Barbuda.

Should the United States have to make the decision with its European partners in the North Atlantic Treaty Organisation (NATO), to actually engage in a war in Afghanistan and elsewhere, it is more than likely that Americans will be even more reluctant to travel than they are at the present time.

The fear of flying, that has arisen from the atrocities of September 11th, will be worsened.
The anxiety of Americans to travel at this time is understandable. Only the absolute unfeeling would not sympathise with them.

The terrible images of passenger-carrying airplanes being used as weapons of destruction will inhabit a special place in all our minds for as long as we live.

And, it will be some time before the stringent measures now introduced to govern air travel imbues a renewed sense of confidence and trust in the American public.

Sadly, the cruise-ship business will not be spared. For, passengers have to fly to Miami from various parts of the US to board the ships bound for the Caribbean.

We have already witnessed a decline in the number of such passengers.

On the financial services side, the evidence of the movement of money for terrorist activities through banks in some countries has led to the elaboration of new rules governing money laundering and financial crime.

The US and the European Union countries have already announced tough and stringent new measures on money laundering and these will include terrorism. The consequence of this is a re-evaluation of the laws and procedures for banks worldwide.

Until these new rules are fully devised and articulated, attempts to grow our own financial services sector will be delayed.

All this will cause our own economy to contract further over the short term. No country in the world will escape the consequences of a decline in the US economy. We are no exception.

Time for unity of purpose

Difficult times are upon us, as they are upon the rest of the world.

But, we are more fortunate than most.

More fortunate than the American people whose nation suffered these vile atrocities; more fortunate that the people in the Middle-East and Asia who must endure the punishments of conflict; more fortunate that the people in Europe and the US who must again send their sons and daughters to war.

Like all of them, we face economic recession. Unlike them, we will continue to enjoy peace and tranquility in an environment of relative safety and security. We will not face death in war, nor will we endure destruction.

Within this awful tragedy, therefore, the prospects are not as bleak for us as it is for others.

We have the opportunity to emerge from this time of fear and uncertainty with better prospects than most.

None of our resources will be devoted to conflict, nor to the reconstruction that follows destruction.

Our resources can be focused on consolidating our present economic base and positioning ourselves to take advantage of the new world of peace and prosperity that must follow this tragic episode.

There has never been a time more important for us, as a nation, to act together, to act with maturity and understanding, to act with unity of purpose as one people, one nation determined to create a better future from the trials of the present.

Involving the social partners

Over the next few days, Government intends to engage the private sector and the trade unions in discussions on how we could cushion the impact of recession on our economy and lay a foundation for the future.

It is obvious that this is a time to control inflation both on prices and wages.

A time of global economic recession is not a time when employers, faced with declining revenues, can accommodate demands for increasing expenditure.

A time of global recession, when many suffer the hardship of no job, is not a time for employees to demand more for the jobs they are fortunate to have.

A time of global recession is also not the time to raise prices for essential commodities upon which the community as a whole depends.

The same temperance that is required for wages, is essential for prices.

These are matters that the Government intends to discuss with the private sector and the trade unions so that, together, we might plough new seeds in this difficult ground, and, in doing so, reap later the harvest of a stable economy.

Prospects for tourism

With respect to tourism, the industry will not survive the tugs and strains of a divided leadership.
Tourism was always a fragile plant. Its fragility is now even more pronounced.

A time of global recession is not a time for storms around it. Its flowers will fall and its stem will break. Nothing will be left, not even its fragrance.

We are at the moment of decision for the future of this industry and the tens of thousands of people whose livelihood depends upon its success.

We must decide to tend this plant together with all the care and attention it needs if it is to continue to bloom.

The Government has already agreed to give the hotels $2.5 million in bed night taxes over the next three months to help them to offer a competitive price in the tourist markets. We have also agreed to absorb a significant portion of the cost of utilities.

The Government is doing its part.

Our task now must be to bring visitors to our shores to replace many in the US market who, arising from the trauma of September 11th, are now reluctant to travel.

Potential exists in Europe among those who had planned to travel to the United States but have been affected by the cut backs in flights to America by both US and European airlines.

Further potential presents itself among those in Europe who will reconsider a holiday over the next few months in Asia and the Middle-East.

Last week, Virgin Atlantic informed our Office in London that it had agreed to increase capacity to Antigua on each of its flights by 33 seats. Since, over the winter, Virgin plans to operate two flights a week into Antigua, this gives us an additional 66 visitors a week providing we can persuade tourists to choose Antigua and Barbuda.

A concerted effort also has to be made to persuade British and European airlines that have pulled out of the US route to put those planes into the Caribbean, and particularly into Antigua.

Getting more flights from the UK and Europe will be an immediate objective of our London Office working with tour operators and hotel representatives in the UK.

Almost immediately after the events of September 11th, our London office began work on a revised marketing plan for the UK with a further campaign in Germany, France and Italy.

At the same time we will continue a reduced marketing programme in the US both to maintain visibility and to try to persuade Americans that coming to our region remains a safe and secure option.

The Government will work hard to secure more planes and increased capacity into Antigua from Europe while maintaining a presence in the US market. But, this thrust would be strengthened and more effective if the hoteliers join us in a unified and harmonious effort.

We will invite all the hoteliers to do so, and we will join with those who are willing to put the energy, time and resources to preserve our tourism industry and grow it.

There are issues of the measures employed by our airport to ensure the safety of airlines flying out of Antigua. The Government, in collaboration with the airlines, has already addressed these matters. We will continue to cooperate with the airlines so that the aviation authorities in our tourist markets continue to be comfortable.

The Government is also taking steps to ensure that the airport and its facilities are maintained at internationally acceptable standards.

Tourism is far too important to our economy, and to the employment of our people, for us to allow the condition of the airport to fail the industry. In this connection, the Government is examining the possibility of delegating the management of the airport facility to a non-governmental body as happens in most parts of the world.

Apart from customs, immigration and air traffic control, the airport facility will be run commercially and will be required to pay its way and to uphold internationally acceptable standards.

I call now on all to put aside personal differences and petty rivalries. I urge the Captains of our tourism ships to join together so that we might launch an Antigua and Barbuda armada dedicated to the common purpose of protecting our industry, and devoted to the shared aim of ensuring its prosperity.

Growing financial services and fighting terrorism

With regard to our financial services industry, it is now clear that legitimate banks in several countries have been used by terrorist organisations to fund their activities.

We must ensure that our jurisdiction is never abused by any persons or organisations for illegal activity associated with money laundering and now with terrorism.

Over the last few days, our Office of National Drug Control and Money Laundering Policy has circulated to all banks, onshore and offshore, a list of terrorists and terrorist agencies compiled by the United States authorities. The banks have all been instructed to comb through their accounts for any of these names and to report their findings.

If any of these names are found, the accounts will be immediately frozen and the information will be provided to the authorities in the US.

So far, several banks have reported that none of their account holders correspond to the names on the US list.

In the coming weeks, my Government will introduce legislation in Parliament to make terrorism a crime.

This is as much a defensive mechanism for ourselves as it is a contribution to fighting terrorism worldwide. For, if terrorists recognise that any activities conducted in or through our jurisdiction will lead to their extradition to an appropriate country, they will think twice before attempting to use this country.

I also propose to add terrorism to our Money Laundering Prevention Act and to our Proceeds of Crime Act to provide for freezing and confiscation of assets.

Relevant legislation will also be amended to allow the Government, though its supervisory bodies, to monitor transactions suspected of terrorist links and to exchange such information with foreign authorities.

My Government remains determined to grow and develop our financial services in the context of internationally accepted rules and practices.

But I recognise that we will only do so if the international community is certain that our jurisdiction is on the frontline of the battle against money laundering including transactions related to terrorist activity.

Therefore, we will implement those rules and enforcement procedures that will ensure our country never bears the stain of disgrace associated with atrocities such as we witnessed on September 11th.

Conclusion

Fellow Citizens, the world faces difficult times in the weeks and month ahead, and our nation will experience its share.

We can emerge from this period of trial, stronger and better prepared to grow and develop our economy. But only if we act together; only if we resolve together to tighten our belts; only if we are wise enough and prudent enough to set aside petty political gain and unproductive personal rivalries for the greater good of all.

I call on the nation as a whole to show the good sense and maturity of which we are capable.

Let us rally together in our collective interest, and by doing so preserve and protect the fruits of this country to which we owe so much.

May God bless us all.